20 August 2007 | Antony Barton
Tender prices for construction work are continuing to soar, particularly for large and complex projects in central London, according to new research.
Building costs in the capital have risen by 14 per cent in two years and could rise another 14 per cent in the next 24 months, construction consultancy Davis Langdon has found.
In Greater London, new-build projects increased in price by 18 per cent, with a value exceeding £10 billion for the first time.
In the report, analyst Peter Fordham said: "The industry has become much more a sellers' market, with contractors having more choice over the work they take on and more power to dictate contractual arrangements."
These costs are partly due to last year's record construction materials price rise of 9.9 per cent. Steel prices are a serious concern with a rise of nearly 50 per cent in Europe in the past 18 months.